b'in income taxes recognized in an organizations financial statements.The Banks policy is to charge penalties and interest to income tax expense as incurred.The tax years before 2012 are no longer subject to examination by federal, state or local taxing authorities. Income taxes reflected in the statements of income are as follows:Years ended December 31,2019 2018Federal: Current $ 225,959 $54,277 Deferred216,268 404,897State: Current141,641 166,406 Deferred98,787 49,789Provision for income taxes $ 682,655 $675,369The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting income, with the income tax provisions in the statements of income:Years ended December 31,2019 2018Income tax expense at the statutory rate of 21%$728,016 $ 744,424Increases (decreases) resulting from: Nontaxable interest income, net of non-deductible interest expense(171,164)(180,732) State income taxes, net of federal income tax benefit 111,581 113,839 Life insurance(34,668)(41,922)Other 48,89039,760Provision for income taxes $682,655 $675,369Effective income tax rate 19.69% 19.05% Federal and state income tax obligations and refundable taxes are included in the statements of financial condition as other assets totaling $632,389 and $715,988 at December 31, 2019 and 2018, respectively.The components of deferred taxes included in the statements of financial condition as of December 31 are as follows:35'